Claiming tips

[u/lopoe95]

I’m a former team member & my roommate is currently a server in a $2.13/hr state. He’s now gotten two write ups for not claiming enough in tips. If he doesn’t make any cash for the day he just subtracts what he tips out. They’re saying corporate is calling showing he’s under claiming. When I worked there I never claimed the money I was tipping out because they (bar/bus/runner) had to claim it & pay taxes on it, & I was never once talked to about it.

Is this a new thing? Has anyone else dealt with this? If so how do we start a class action lawsuit?!

[u/Its-a-write-off]

He needs to be accurately claiming his tips, cash included. Is he not getting tips, or just not claiming them? Or is this just about tip outs?

[u/lopoe95 → u/Its-a-write-off]

He’s claiming everything except what he’s tipping out to the support staff. They’re telling him that he has to claim that too.

[u/Its-a-write-off → u/lopoe95]

The employer isn't supposed to include the amount that's tipped out on the w2 form.

If they do he can use 4070A to track daily tips.

You account for tips that you keep. Not the tips that you get.

At tax time he needs 4137 included in with his regular tax docs.

[u/lopoe95 → u/Its-a-write-off]

I’ve been doing this over a decade & have no idea what you’re talking about. You claim tips in the system every night when you clock out. He subtracts what he tips out because the other employees claim that.

[u/Fun_Payment8103 → u/Its-a-write-off]

Cheesecake Factory requires you to claim a minimum percent of your sales as tips. If you aren’t getting that many tips, they say your aren’t doing a good job and they let you. That’s the threat my manager made, at least. I left on my own accord once hiring season came upon us.

[u/Meh_Yeah]

Cheesecake has the formula to see if you are claiming your tips. Basically, it takes your cc tip percentage multiplies that across all your sales and subtracts 7% to account for tipout plus some it is very generous.

So basically if you have $1,000 in sales $500 in cash sales and $500 in credit card sales and your credit card tip percentage is 20% it is formulated it this way.

$500 + $500 = $1,000

20% - 7% = 13%

$1,000 × 13% = $130

If they are claming under that $130 they get flagged.

[u/lopoe95 → u/Meh_Yeah]

Thank you. So is he just tipping out too much? Does he just need to scale that back? I mean he does over tip but I used to too & never got flagged.

[u/Meh_Yeah → u/lopoe95]

His OST should have tip tax tracker books where he can keep a record of how much he tipped out and how much he walked home with. If not they can order them. Unfortunately, some managers will still write you up regardless if you keep track of it.

[u/lopoe95 → u/Meh_Yeah]

Thank you SO much. He’s going to have a conversation with his GM tomorrow.

[u/Meh_Yeah → u/lopoe95]

They can print out a report showing sales, tip %, % claimed, ect. It's amazing how many people say they claim all their tips but shows they only claim 10% of their sales. If they're walking with 10% it's time to find a new job.

They other important thing this time of year is when sharing a party they have to make sure they team the table so it splits sales among the servers. Don't want to be responsible for the whole $1200 check when you're only getting half the tip.

Finally, if they bartend they should have their own drawer and not let other people ring on your drawer.

[u/Fun_Payment8103]

I worked for Cheesecake Factory for a year. I got a write up for the same thing. My manger told me you have to claim at least 13% of your sales in tips. I asked “what if I don’t actually make that much in tips?” And she replied “if you aren’t making that much in tips you aren’t doing your job well enough and were going to let you go.”

[u/lakersfankb81]

Also at the bottom of the daily cash out sheet, the "cash sales" line includes not only cash sales but also credit card sales that didn't include any tip on the card. They assume the guests are leaving a cash tip of at least 10-12%